The Invoice Seems To Be Missing

Whether it was the office dog who ate the invoice or sheer negligence, lost invoices appears to be the most common excuse for payment delays. According to research from credit control business Satago, businesses can benefit from keeping a paper trail of when you sent an invoice and all your communication with a debtor. In this age, many businesses operate digitally so as a business you have to be sure to email invoices to the right department to make payments easier. To be certain that your customer gets the receipt, it never harms to send it in the post too. Having a physical copy enables the debtor to have no excuse of payment.

When speaking with your debtors, remind them of your payment terms and the possibility of being charged interest under the government's Late Payment Of Commercial Debts (Interest) Act 1998. For invoices that are not paid on time, it enables you to claim interest, compensation and (for orders placed after 16 March 2013) your reasonable costs of collecting the debt where these exceed the compensation. Interest can be claimed at 8% over base together with debt recovery compensation at the rate of £40 - £100 per invoice.

I Sent The Cheque Last Week

If a debtor has legitimately sent a cheque you should be able to track that in some way, well hopefully. Request the cheque number or ask your debtor to cancel the initial cheque and resend it first class recorded delivery. Once they have done so, insist on having the tracking number so that you can locate its whereabouts and ensure it reaches you For future payments, update your T&Cs to include details on sending cheques. State they must be sent recorded, first class and the cheque number and tracking reference should be shared with you as soon as they have issued the payment. Even better: ask them to pay by BACS so the money hits your account right away.

We're Not Paying You

Your debtor may claim the work was 'never signed off' or simply refuse to pay without giving you a just reason behind their decision. If you find yourself in this situation, seek advice from a debt recovery solicitor who will be able to review your case in detail and guide you on how to collect your debts. To protect yourself against these types of claims in the future, ensure you have a signed contract before you begin work.

The Financial director Is On Holiday, So We Can't Pay

This one is our favorite. A business should still be able to operate in the absence of a director, especially for such a short time frame as a holiday. Business dont just suddenly stop running when the director is not around. if you're not doing so already, request to speak to a senior member of staff. Advise them on alternative payment methods, if this helps them to action a payment. Gently remind them that their director will probably not like the incurring interest on the late payment either if they continue to withhold.

In the event of receiving awful excuses like this , you might want to contact a debt recovery service. Get started with our Free LBA template to see how your letter will look like.